Private Equity

Lecture 7 - 8: Valuation, LBO Model, Exit

Quiz covering LBO structure and lender protection, financial covenants, the maximum leverage exercise, dividend recaps, valuation methodologies and multiples, the LBO model build and returns breakdown, and exit routes.

Question 35 of 56

According to the lecture's link between multiples and DCF, the EV/EBITDA multiple can be expressed as:

$\frac{V a l u e _{t}}{E B I T D A _{t}} = C C_{t} \cdot \frac{( 1 + g )}{( r - g )}$

$\frac{V a l u e _{t}}{E B I T D A _{t}} = \frac{( r - g )}{( 1 + g )}$

$\frac{V a l u e _{t}}{E B I T D A _{t}} = r - g$

$\frac{V a l u e _{t}}{E B I T D A _{t}} = F C F_{t + 1} \cdot (1 + g)$

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